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Cambridge Bancorp Reports First Quarter Results
Monday, April 25, 2011
CAMBRIDGE, Mass. - Cambridge Bancorp (OTC BB: CATC) today reported unaudited net income of $3,105,000 for the first quarter of 2011, or $0.82 per diluted share, compared to $2,746,000, or $0.73 per diluted share, for the same quarter in 2010. The quarter-over-quarter earnings increase of $359,000 (13.1%) was attributable to a combination of solid growth in wealth management income and interest income on loans.
“I am proud to report a solid first quarter performance,” noted Joseph V. Roller II, president and CEO. “The results reflect the benefits of our steady focus and continued execution of our business plans.”
“Noninterest income provided a nice lift to first quarter earnings,” said Roller. Total noninterest income of $4.6 million for the first quarter of 2011 was $522,000 (12.7%) higher than the same period in 2010. The Bank continued to build momentum in generating wealth management income, which increased $383,000 (13.3%) between the comparable periods, from new account growth and a favorable equity market. In addition, gains taken on investment securities were $268,000 in the most recent quarter compared to $138,000 in the first quarter of 2010.
“We were pleased by the healthy rate of growth in both loans and deposits during the first quarter of 2011. This performance however should be viewed in the context of sustained pressure on our net interest margin,” added Roller.
Total loans outstanding increased by $38.1 million (6.7%) to $606.7 million since year-end 2010 and by $62.1 million (11.4%) over March 31, 2010. The loan growth in the first quarter of 2011 was primarily attributable to an increase in residential mortgages of $28.0 million (10.3%) and commercial mortgages of $15.0 million (8.4%).
Non-performing loans as a percentage of total loans stood at 0.15% at March 31, 2011, a decrease compared to 0.20% at December 31, 2010. Loan quality remains sound and the Allowance for Loan Losses stood at $9.4 million or 1.55% of total loans outstanding at March 31, 2011. At December 31, 2010, the Allowance for Loan Losses was $8.9 million or 1.56% of total loans outstanding. The Bank experienced a net recovery during the first quarter of 2011, which increased the Allowance for Loan Losses above the $250,000 Provision for Loan Losses made during the period.
Total deposits increased by $15.8 million to a record $1.0 billion since year-end 2010 and by $130.1 million (14.8%) over March 31, 2010.
The Bank’s net interest margin was 3.89% for the three months ended March 31, 2011 compared to 4.32% for the first quarter of 2010. The net interest margin decrease of 43 basis points for the comparable periods is primarily attributed to lower yields earned on the Bank’s investment securities.
Noninterest expense in the first quarter of 2011 totaled $10.4 million, an increase of $324,000 (3.2%) over the first quarter of 2010. The increase in noninterest expense was spread across multiple areas, with the largest being $184,000 (11.2%) in occupancy and equipment, principally due to branch expansion and technology-related investments.
Cambridge Bancorp and its subsidiary, Cambridge Trust Company, are based in Cambridge, Massachusetts, in the heart of Harvard Square. Cambridge Trust Company is a 121-year-old Massachusetts chartered commercial bank with $1.1 billion in total assets and 11 Massachusetts locations in Cambridge, Beacon Hill, Belmont, Concord, Lexington, Lincoln, and Weston. Cambridge Trust Company is one of New England’s leaders in wealth management with $1.5 billion in client assets under management. In addition, Cambridge Trust Company of New Hampshire offers wealth management services at two New Hampshire locations, Concord and Exeter.
The accompanying unaudited condensed interim consolidated financial information should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Cambridge Bancorp 2010 Annual Report, which is posted in the investor relations section of our website at www.cambridgetrust.com/annualreport. We will also post supplemental financial information for first quarter of 2011 at the same site later this month. Interim results are not necessarily reflective of the results for the entire year.